The former chief financial officer for bankrupt Dunkin' Donuts franchisee Kainos Partners Holding Company LLC has been charged with grand larceny for allegedly siphoning $429,000 from the company, according to NBC NewYork. Christopher Cortese allegedly used the money to pay for vacations, car payments and gift cards as well as the ghost employment of two girlfriends.
Despite the large amount, the embezzlement did not lead the Greer, S.C.-based company to file bankruptcy last summer, reports Long Island Business News. Weak business and the inability to meet its $10 million to $50 million in loan obligations are to blame, according to the story. Kainos is unable to emerge from bankruptcy protection, and Dunkin' Donuts parent company Dunkin' Brands has begun a bidding process for its restaurants and other assets. Kainos owns and operates 56 Dunkin' Donuts restaurants in New York, South Carolina and Nevada.
From Long Island Business News:
Dunkin' Brands has submitted bids for "a substantial portion" of the assets, although other buyers also will be able to bid. No final date is set for the sale, although Dunkin' Brands expects it to be in early April. Kainos Partners is continuing to operate the units until a sale is completed.
In July 2008, Jon Luther, then-Dunkin' Brands chairman and CEO, honored Kainos Partners as "Developer of the Year" and hoped its growth model of building quickly in new markets would be emulated by others, according to Blue MauMau. But Kevin McCarthy, chairman of the Dunkin' Donuts Indepedent Franchise Owners association, said organic growth is a better model for the brand, and Dunkin' Brands Nigel Travis' desire to improve operations should help the company.
